Largest Railroad Union Endorses Union Pacific's $85 Billion Acquisition of Norfolk Southern

In a significant development for the U.S. rail industry, the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division (SMART-TD), the nation's largest railroad union, has endorsed Union Pacific's proposed $85 billion acquisition of Norfolk Southern. This endorsement, announced on September 22, 2025, follows an agreement that guarantees job security for SMART-TD members in train and yardmaster services, ensuring their employment for the duration of their careers post-merger.

The proposed merger aims to create the first transcontinental freight railroad in the United States, combining Union Pacific's extensive western network with Norfolk Southern's eastern operations. The combined entity would operate over 50,000 route miles across 43 states, connecting approximately 100 ports in North America.

Under the agreement between SMART-TD and Union Pacific, members are assured lifetime job protection, with a commitment from Union Pacific that these employees will not face involuntary furloughs as a result of the merger. Additionally, affected terminal employees will benefit from preferential hiring practices, and both parties have committed to collaborative implementation strategies to ensure smooth integration.

SMART-TD President Jeremy R. Ferguson highlighted the significance of this agreement, stating, "For generations, railroaders have worried about what mergers might mean for their jobs and whether or not they would be given the opportunity to reach retirement on the rail. Today, we can say with confidence that the biggest railroad and the biggest rail union in America are breaking new ground. We are protecting jobs, protecting families, and protecting the future of the U.S. supply chain."

Union Pacific CEO Jim Vena expressed gratitude for the union's support, noting, "I want to thank SMART-TD for its leadership. When we announced our intent to create the first transcontinental railroad in America, I made a promise to protect the jobs of all unionized employees. Those who have a job when the merger is approved will continue to have one."

Norfolk Southern CEO Mark George also emphasized the positive impact of the merger, stating, "This merger will create opportunities for growth – not just for our business, but for our people. That’s why, from the outset, we made clear that every union employee at the combined company would have a job."

Despite SMART-TD's endorsement, other unions and industry groups have expressed reservations. The Brotherhood of Maintenance of Way Employes Division (BMWED) rejected a similar offer from Union Pacific, citing concerns that job protections are inadequate if workers are forced to accept lower pay or relocate to short-line railroads. Additionally, the American Chemistry Council has expressed worries that the merger could reduce competition and lead to higher shipping rates, referencing past rail mergers that resulted in service disruptions and increased costs for customers.

The proposed merger is subject to approval by the Surface Transportation Board (STB), a process that could take up to two years. Union Pacific CEO Jim Vena has expressed confidence in obtaining regulatory approval, noting positive feedback from senior administration officials and describing the deal as a "win for the country."

As of September 26, 2025, Union Pacific's stock (UNP) is trading at $234.76, while Norfolk Southern's stock (NSC) is at $297.50. The merger has the potential to create the first coast-to-coast freight rail network in the United States, which could lead to increased efficiencies and competitive advantages.

This merger, if approved, would be the largest railroad acquisition in U.S. history, surpassing previous mergers in scale and scope. Past rail mergers in the 1990s, such as the Union Pacific-Southern Pacific deal and the Conrail acquisition, faced significant challenges, including service disruptions and regulatory scrutiny.

The endorsement of the Union Pacific-Norfolk Southern merger by SMART-TD marks a significant development in the U.S. rail industry. While the agreement provides unprecedented job security for union members, the merger faces opposition from other labor unions and industry groups concerned about competition and service quality. The outcome of the regulatory review will have far-reaching implications for the future of freight rail in the United States.